XRP has entered a decisive phase as traders seek signs that selling pressure is finally easing. After weeks of corrective movement, price action now reflects a market balancing fear with renewed speculative interest. Technical indicators increasingly suggest that momentum may be preparing for a shift, even as broader volatility keeps participants cautious.
In a recent post on X, STEPH IS CRYPTO drew attention to a confirmed bullish RSI divergence on XRP’s daily chart. He emphasized that this signal appears at a moment when XRP trades near a historically sensitive demand zone. Steph’s observation quickly gained traction, as the setup aligns with patterns that have previously preceded meaningful rebounds.
Daily Chart Shows Momentum Shift
The one-day XRP/USD chart from Binance shows price recording lower lows near the $1.89 region. At the same time, the Relative Strength Index prints higher lows around 39.47. This divergence indicates that sellers are losing grip, and bearish momentum is weakening, meaning they no longer have as much control over the price.
🚨 Confirmed bullish RSI divergence for $XRP
Now send us to $5 with haste! pic.twitter.com/CmL3FLqc56
— STEPH IS CRYPTO (@Steph_iscrypto) January 21, 2026
XRP pulled back from its January high and is now holding steady above its short-term support level, currently trading at $1.96. The structure reflects compression rather than breakdown. Traders often view this behavior as a foundation-building phase when combined with bullish momentum divergence.
Historical Context Strengthens the Bullish Case
Past XRP cycles show that similar RSI divergences often preceded strong recovery moves. In multiple instances, confirmed divergences on the daily timeframe led to rallies averaging roughly 30% once buyers reclaimed momentum. Current price behavior closely mirrors those historical formations, keeping bullish expectations alive.
However, markets rarely repeat with perfect precision. RSI divergence offers probability, not certainty. Technical research indicates that these setups have a 60% success rate, so it’s crucial to confirm before assuming the trend will continue.
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Price Target Optimism Meets Market Discipline
Steph framed the divergence as a potential springboard for a larger upside move, with community sentiment quickly extending toward a $5 target. That projection reflects broader confidence in XRP’s long-term structure rather than an immediate short-term outcome.
For this setup to mature, XRP must attract expanding volume and sustain higher daily closes. A clean break above reclaimed resistance would strengthen the bullish thesis and invalidate lingering downside risks.
Fundamentals and Adoption Remain Decisive
Technical strength alone cannot drive sustained upside without fundamental support. Ripple is making significant strides in institutional adoption, cross-border payments, and liquidity solutions, which are positively impacting XRP’s long-term prospects. Market participants now watch whether technical momentum aligns with real-world usage growth.
XRP stands at a technical crossroads. The confirmed bullish RSI divergence shifts momentum in favor of buyers, but the next move depends on follow-through. If confirmation arrives, XRP may soon test whether optimism can translate into lasting price expansion.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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